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Unique Mobility, Inc. to Develop Motors for Electric Vehicles

6 July 2000

Unique Mobility, Inc. Announces Contract to Develop Modular Line of High Performance Permanent Magnet Motors for Hybrid Electric and Fuel Cell Electric Vehicles

    GOLDEN, Colo. - Unique Mobility, Inc., a developer of alternative energy 
technologies, announced today that it has been awarded a two-year, $750,000 
contract from the United States Department of Energy to continue development of 
a modular line of high-performance motors for hybrid electric and fuel cell 
electric vehicles under the Small Business Innovation Research Program.

    The award stems from the successful completion of an initial study and
evaluation contract where the Company was able to demonstrate the feasibility
of innovative heat removal concepts that allow for significant improvement in
the weight, size and output power of the Company's state-of-the-art permanent
magnet motors.  The current project will focus on the application of these
innovative cooling techniques to a new modular design of permanent magnet
motors that is expected to improve the continuous power output of the
Company's current industry-leading motors and generators by approximately 25
percent without increasing the size or weight of the machine.  This new
modular design can be easily configured to a number of output power levels and
applications using many of the same motor components which will allow for
lower tooling investments and manufacturing costs.

    "This project is a significant step in our ongoing strategy to
continuously advance the efficiency and performance of our permanent magnet
motor technology," said Jon Lutz, Unique's Director of Engineering.  "We
expect to not only advance the state-of-the-art of permanent magnet motors and
generators, but to also focus on design for low cost manufacture which will be
increasingly important as automotive companies begin volume production of
hybrid electric and fuel cell electric vehicles."

    Commented William G. Rankin, President and Chief Executive Officer, "This
technology and product development program represents the next evolution of
our permanent magnet motor designs to yet higher levels of performance at a
reduced cost to our automotive customers.  It also reflects DOE's recognition
of the important potential that this technology represents and their
confidence in our ability to take it into competitive commercial production.
We appreciate their support."

    Unique Mobility, Inc. is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies and electronic assemblies for
the automotive, aerospace, telecommunications, medical and industrial markets.
A major emphasis of the Company is in applying its systems to the emerging
hybrid electric and fuel cell electric vehicle market.  The Company's
headquarters and engineering and product development center are located in
Golden, Colorado.  Manufacturing facilities are located in Frederick, Colorado
(electric motors and gear assemblies) and St. Charles, Missouri (electronic
assemblies and wire harnesses).